The rival bid by IHH would follow Manipal's offer on April 10 to buy Fortis at around 155 rupees (RM9.19) per share, or 80.39 billion rupees, which minority shareholders - including billionaire Indian investor Rakesh Jhunjhunwala - had expressed concerns about.
Deloitte expects India's healthcare market will grow three-fold to $372 billion by 2022. Increasing access to healthcare services and a government drive to expand health insurance are expected to increase footfalls at hospitals, benefitting chains such as Manipal and Fortis. The two entities said they are concerned about Fortis' future and the company requires funding for its immediate needs as well as to develop its long-term value.
The Fortis sale has been delayed due to the legal cases against its founders, brothers Malvinder and Shivinder Singh, who lost control of the healthcare firm after their stakes plunged to low single digits.
A lack of quality assets in healthcare in India also makes Fortis attractive, a source advising Fortis on the deal said, declining to be named.
Subsequently, amid reports of growing disappointment of Fortis shareholders and a possible counter bid from IHH, Manipal had sweetened the offer.
Meanwhile, on Thursday it had received an unsolicited binding offer jointly from Sunil Munjal of Hero and Burmans of Dabur to invest Rs 1,250 crore directly into the company through a preferential allotment.
As per IHH's non-binding expression of interest put forward to FHL's Board of Directors, a price of up to Rs 160 per Fortis share would be appropriate based on publicly-available information and its preliminary analysis, but the offer would be subject to satisfactory completion of a limited due diligence.
Fortis Healthcare would be in focus today after the company, late yesterday night, received an offer from offices of Munjals and Burmans.
The Munjal-Burman consortium had said that their offer is "simple and does not envisage any changes to the current structure, operations, and assets" of Fortis.
IHH Healthcare Berhad, which is majority owned by Malaysian sovereign wealth.